Connected Agriculture Market Size
| Study Period | 2019-2029 |
| Market Size (2024) | USD 5.78 Billion |
| Market Size (2029) | USD 9.78 Billion |
| CAGR (2024 - 2029) | 11.10 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Connected Agriculture Market Analysis
The Connected Agriculture Market size is estimated at USD 5.78 billion in 2024, and is expected to reach USD 9.78 billion by 2029, growing at a CAGR of 11.10% during the forecast period (2024-2029).
The demand for advanced agricultural techniques to optimize crop yields while using the least amount of resources, such as water, fertilizer, and seeds, is the key factor driving the growth of the connected agriculture market. Farmers and businesses will be able to manage their time more effectively on the farm while using fewer resources by putting various linked agricultural technologies into practice.
- Water management in agriculture is critical for increasing agricultural yields while decreasing costs and contributing to environmental stability. Agriculture officials are concerned about water scarcity and are working to enhance agricultural water management. Water management solutions in linked agriculture, which incorporate the Internet of Things (IoT), mobile applications, Big Data analytics, and decision support systems, are assisting in the production of environmentally friendly and optimum agricultural outputs for a growing population.
- Connected agriculture enables farmers to maximize crop cultivation while reducing expenses and effort associated with traditional agricultural methods. Connected agriculture boosts production by allowing farmers to expertly invest time and resources in the right combination to more precisely evaluate optimum sowing density, estimate fertilizers, and predict crop yields. Farmers currently rely on the most recent agricultural advancements, such as the usage of cell phones and other linked equipment. Sophisticated connected technologies such as low power wide area (LPWA), Zigbee, WiFi, and new wireless sensor technologies aid farmers in the planning and execution of various agricultural operations such as purchasing supplies, inventory control, timely planting and harvesting, and so on.
- Data collection is the first stage of precision agriculture and, thus, the most researched. This is accomplished mostly through the determination of soil fertility (one sample from the field, a polygon, or a zone). Zones are created using aerial or satellite imagery and are based on yield maps or photographs of the same crop over numerous years. It is done to boost yields eventually. A one-hectare polygon grid is the most often used soil testing method. This grid dimension is adequate for understanding the field's variability and what is going on in it. Finally, based on the soil scan, task maps are created for precise fertilizer and liming applications.
- There is a lack of understanding of connected farm technology, and installation is prohibitively expensive. These are the technology's constraints over the anticipated timeframe. The majority of farmers worldwide are small-scale farmers who cannot afford such costly equipment. This technique necessitates competent and knowledgeable farmers, large initial investments, and effective farming instruments, making farmers unwilling to gather information from it. Because of its high cost, it is only suitable for large and industrialized farms.
- The COVID-19 pandemic brought attention to using artificial intelligence (AI). Data is used in real-time by artificial intelligence and machine learning models to get insightful knowledge, such as when to plant seeds, which crops to choose, which hybrid seeds to select for higher yields, and other things. Precision agriculture, often known as artificial intelligence systems, is assisting in enhancing the overall quality and accuracy of harvests. AI technology aids in the detection of pests, plant diseases, and undernutrition in farms. Artificial intelligence (AI) sensors can identify and target weeds before deciding which herbicide to use.
Connected Agriculture Market Trends
By Application, Smart Irrigation is Analyzed to Witness Substantial Growth
- The smart irrigation application is analyzed to witness significant growth over the forecast period. The application of connected agriculture in smart irrigation is further amplified by the growing use of Smart water management, which is an integral part of the solution for water management challenges. The potential application of smart systems in water management is vast and includes solutions for water quality, water quantity, and efficient irrigation.
- Moeover, water scarcity may directly affect nearly 20% of the human population by 2025, UN reports state, and indirectly influence the rest of the planet's inhabitants. Smart water systems based on the combination of the IoT, big data, and AI technologies may help stop these predictions and undo the damage the imprudent usage of water resources has already caused.
- Further, Smart irrigation provides solutions to society's critical challenges, such as supporting global food security and protecting water resources. Rising awareness regarding advanced technologies in irrigation and real-time data access to farms among large-scale farmers are some of the applications of connected agriculture solutions and services in the smart irrigation landscape. Such developments further foster the growth of the segment.
- According to IEA, by 2040, it is predicted that the total amount of water that will need to be withdrawn will be 4,350 billion cubic meters. The increase in water consumption in recent decades has outpaced population growth by a factor of two. Such huge water consumption and withdrawal would create an opportunity for connected agriculture solutions and services application in smart irrigation.
Asia Pacific to Witness the Highest Growth
- The Asia Pacific region is analyzed to witness significant growth in the connected agriculture market over the forecast period, owing to presence of significant number of market vendors, emergence of new age agri-tech startups coupled with growing use of advanced technologies in farming. In addition, various government initiatives to support smart agriculture in the region is analyzed to create growth opportunities for market vendors in the coming years.
- Japan's agricultural production expenses are high in comparison to other countries, owing to the high cost of agricultural inputs such as fertilizers and agricultural gear. According to the Ministry of Agriculture, Forestry, and Fisheries, rice cultivation, Japan's principal agricultural commodity, costs, on average, JPY 9,180 in total input costs for every 60kg of rice produced last year. Fertilizer expenditures account for 13% of this total, with agricultural machinery and implementation accounting for the remaining 32%. As a result, advancements in connected agriculture that reduce fertilizer waste or lower machinery costs will tremendously benefit Japanese farmers.
- Further, the Department of Agriculture (DA) in the Philippines is evaluating the potential of drones to change the way seeds are planted, the way fertilizers and pesticides are applied, and the way crops are monitored. Moreover, the Ministry of Japan set a goal to introduce agricultural drones for about half of the land planted with rice, wheat, and soy across Japan by 2022.
- In India, the Maharashtra government has yet to develop a policy following the Center's clearance of the use of drones to spray pesticides in October 2022. Before approving subsidies under the Center-approved drone purchase program, the state administration is awaiting clarifications. Drones are being promoted as a way to combat the labor crisis and advance agricultural mechanization. International agrochemical company Syngenta said on Monday that two of its fungicide formulations had been given the go-ahead for drone spraying by the central pesticide board, the organization in charge of spraying regulations.
Connected Agriculture Industry Overview
The connected agriculture market is consolidated owing to the presence of multiple players. The players in the market are adopting strategies like product innovation, mergers, and acquisitions in order to expand their product portfolio and expand their geographic reach and primarily to stay competitive in the market.
In January 2023, through a Knowledge Transfer Partnership (KTP), Aston University collaborated with engineering firm Solargen Technologies (SGT) and the University of Nairobi to develop a smart irrigation system that uses solar and wind energy to provide year-round watering of land and improve crop production in Kenya. SGT is Kenya's largest provider of energy, water, and irrigation solutions and services. They collaborate with non-governmental organizations, governments, and people to provide customized energy, water, and food security solutions to communities in rural and conflict-affected areas of Eastern Africa.
In November 2022, Trimble Agriculture and xFarm Technologies today announced a new collaboration. Trimble, the global player in precision farming technology, can now provide farmers with more valuable and efficient solutions through integration with the xFarm app developed by tech company xFarm Technologies, which uses its digital platform to support and simplify the work of 120,000 farms spread across 1.7 million hectares in over 100 countries.
Connected Agriculture Market Leaders
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Cisco Systems Inc.
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IBM Corporation
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SAP SE
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Trimble Navigation Ltd
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Microsoft Corporation
*Disclaimer: Major Players sorted in no particular order
Connected Agriculture Market News
- November 2023 - AGCO acquired digital assets from FarmFacts GmbH, a Farm Management Information Software (FMIS) firm in Pfarrkirchen, Germany, and BayWa AG group subsidiary. FarmFacts specializes in software for farmers and service providers to generate field action plans from prescription maps to guidance line creation. The acquisition increases AGCO’s FMIS offering and software development capabilities to serve farmers’ data management needs.
- September 2023 - John Deere and Yara partnered to combine Yara’s agronomic expertise with John Deere’s advanced machinery and precision technology. The collaboration will enable farmers to increase yields and enhance fertilizer use, helping them contribute to the ambitious European Union’s Farm to Fork Strategy.
Connected Agriculture Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitute Products
4.3 Industry Value Chain Analysis
4.3.1 Intensity of Competitive Rivalry
4.4 Assessment of the Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Emergence of BYOD (Bring Your Own Drone) in Connected Agriculture
5.1.2 Upsurge in Demand for Smart Water Management Systems
5.2 Market Restraints
5.2.1 Steep Learning Curve Regarding Connected Agriculture
6. MARKET SEGMENTATION
6.1 By Component
6.1.1 Solution
6.1.1.1 Network Management
6.1.1.2 Agriculture Asset Management
6.1.1.3 Supervisory Control
6.1.2 Service
6.2 By Application
6.2.1 Smart Logistics
6.2.2 Smart Irrigation
6.2.3 Farming Planning and Management
6.3 Geography
6.3.1 North America
6.3.1.1 United States
6.3.1.2 Canada
6.3.2 Europe
6.3.2.1 Germany
6.3.2.2 United Kingdom
6.3.2.3 France
6.3.2.4 Rest of Europe
6.3.3 Asia-Pacific
6.3.3.1 China
6.3.3.2 Japan
6.3.3.3 India
6.3.3.4 Rest of Asia-Pacific
6.3.4 Latin America
6.3.5 Middle-East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Cisco Systems Inc.
7.1.2 IBM Corporation
7.1.3 SAP SE
7.1.4 Trimble Navigation Ltd
7.1.5 Microsoft Corporation
7.1.6 Vodafone Group PLC
7.1.7 Accenture PLC
7.1.8 SWIIM System
7.1.9 Orange Business Services
7.1.10 Link Labs LLC
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Connected Agriculture Industry Segmentation
Connected agriculture provides for precise and ethical cultivation by only treating what needs to be treated and only at the proper moment. Farmers may then produce healthier food while also protecting, if not enhancing, biodiversity and renewable energy. It also improves farming practices by using network management, agriculture asset management, supervisory control, and data acquisition.
The connected agriculture market is segmented by component (solution [network management, agriculture asset management, and supervisory control], service), application (smart logistics, smart irrigation, farming planning and management), and geography (North America, Europe, Asia-pacific, Latin America, and Middle east and Africa).
The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Component | |||||
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| Service |
| By Application | |
| Smart Logistics | |
| Smart Irrigation | |
| Farming Planning and Management |
| Geography | ||||||
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| Latin America | ||||||
| Middle-East and Africa |
Connected Agriculture Market Research FAQs
How big is the Connected Agriculture Market?
The Connected Agriculture Market size is expected to reach USD 5.78 billion in 2024 and grow at a CAGR of 11.10% to reach USD 9.78 billion by 2029.
What is the current Connected Agriculture Market size?
In 2024, the Connected Agriculture Market size is expected to reach USD 5.78 billion.
Who are the key players in Connected Agriculture Market?
Cisco Systems Inc., IBM Corporation, SAP SE, Trimble Navigation Ltd and Microsoft Corporation are the major companies operating in the Connected Agriculture Market.
Which is the fastest growing region in Connected Agriculture Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Connected Agriculture Market?
In 2024, the North America accounts for the largest market share in Connected Agriculture Market.
What years does this Connected Agriculture Market cover, and what was the market size in 2023?
In 2023, the Connected Agriculture Market size was estimated at USD 5.14 billion. The report covers the Connected Agriculture Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Connected Agriculture Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Connected Agriculture Industry Report
Statistics for the 2023 Connected Agriculture market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Connected Agriculture analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
